If the dollar falls in value compared to other currencies, what will happen in the United States? a. A decrease in aggregate supply b. A decrease in aggregate demand c. An increase in aggregate supply d. A decrease in the U.S. price level

If the dollar falls in value compared to other currencies, what will happen in the United States? a. A decrease in aggregate supply b. A decrease in aggregate demand c. An increase in aggregate supply d. A decrease in the U.S. price level

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 2CQQ

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Question

If the dollar falls in value compared to other currencies, what will happen in the United States?

a.
A decrease in aggregate supply

b.
A decrease in aggregate demand

c.
An increase in aggregate supply

d.
A decrease in the U.S. price level

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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